Question: Bengal Co. reports the following data: Sales 962,500 Variable costs 467,500 Contribution margin 495,000 Fixed costs 165,000 Income from operations 330,000 Determine Bengal Co.'s operating leverage.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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Determine OPERATING LEVERAGE

Question:
Bengal Co. reports the following data:
Sales
962,500
Variable costs
467,500
Contribution margin 495,000
Fixed costs
165,000
Income from operations 330,000
Determine Bengal Co.'s operating leverage.
Transcribed Image Text:Question: Bengal Co. reports the following data: Sales 962,500 Variable costs 467,500 Contribution margin 495,000 Fixed costs 165,000 Income from operations 330,000 Determine Bengal Co.'s operating leverage.
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